The Closing Disclosure is one of the most important documents a Spokane homebuyer receives and one of the least understood. You have 3 business days to review it before closing day. Here is exactly what it is, what it contains, and what to check before you sign anything.
What Is a Closing Disclosure?
A Closing Disclosure is a federal lending document required by the Consumer Financial Protection Bureau for every home purchase that involves a mortgage loan. It is not the same as the Washington state Seller Disclosure Statement.
- The Closing Disclosure applies only to buyers using a mortgage loan
- Cash buyers in Spokane do not receive a Closing Disclosure but do receive a settlement statement from escrow
- Your lender is required by federal law to deliver the Closing Disclosure at least 3 business days before closing
- You have the right to review it in full before signing anything
What the Closing Disclosure Contains: Page by Page
The Closing Disclosure is a 5-page standardized federal form. Each page covers a specific category of your loan and closing costs.
- Page 1: Loan Terms. States your loan amount, interest rate, monthly principal and interest payment, and whether your rate or payments can increase. On a $369,000 Spokane home with 20% down at 6.50%, the principal and interest payment is approximately $1,875 per month.
- Page 2: Closing Cost Details. Itemizes every fee including loan origination, appraisal, title search, title insurance, and prepaid items such as homeowners insurance and property taxes. Spokane buyers typically pay 2 to 5 percent of the purchase price in total closing costs.
- Page 3: Cash to Close. Shows the exact dollar amount you need to wire to escrow before closing. This includes your down payment plus all closing costs minus any seller or lender credits.
- Page 4: Loan Disclosures. Covers whether the loan has a prepayment penalty or a demand feature. Most conventional Spokane loans do not have either.
- Page 5: Loan Calculations and Contact Information. Shows the total amount paid over the life of the loan, the annual percentage rate, and contact details for your lender, agent, and escrow officer.
What to Check When You Receive Your Closing Disclosure in Spokane
- Confirm the loan amount, interest rate, and monthly payment match your original lender quote
- Verify the cash to close on Page 3 matches the wire amount your escrow officer confirmed by phone
- Review all fees on Page 2 and ask your lender to explain any charge you do not recognize
- Compare the Closing Disclosure to your original Loan Estimate. Significant differences require a clear explanation from your lender before closing day.
- Confirm your name, property address, and loan type are correct on Page 1
What to Do If Something Is Wrong on the Closing Disclosure
- Contact your lender immediately
- A corrected Closing Disclosure restarts the 3-business-day review period
- Do not wire any funds until you confirm the cash to close amount directly with your escrow officer at Spokane County Title or your designated Spokane escrow company by phone
- Never wire funds based solely on email instructions
🌟 How Emiley and Zech Help Spokane Buyers Navigate the Closing Disclosure
- They review the Closing Disclosure with every Spokane buyer before closing day
- They coordinate directly with the lender and escrow officer to confirm all numbers align
- They flag any fees that appear inconsistent with the original Loan Estimate
- They make sure every buyer understands exactly what they are signing before arriving at the closing table
- The first conversation with Emiley and Zech is always free
Reach out to Emiley and Zech at Rios and Co Real Estate before you make an offer in Spokane.
Rios and Co Real Estate · eXp Realty · Spokane, WA
